Buying land on strength of other land

Toplink

So... we have an outfarm (call it Farm A) of about 50 acres. Its quite a distance from the home farm and does not have great facilities.

A farm of land has come up closer to home.... about 30 acres. (Farm

Will the bank give you bridging finance in this situation based on the fact that you will sell Farm A and use the proceeds of it to pay farm B?

Are they likely to charge you much for the 'loan?

jay gatsby

Don't know about recently but bridging loans were always a crucifixion on interest. Could you sell your own first and leave it sale subject till the other comes through?

TUBBY

Ok. Ethics out the window here but if the auctioneer selling the bit you want was also asked to sell your bit, it would,be in his interest to sell yours and the bit you want also.

what i mean is he gets two commissions but also you know nothing will happen before you sell....
hard to explain but hopefully ya get the jist

Toplink

TUBBY wrote: »

Ok. Ethics out the window here but if the auctioneer selling the bit you want was also asked to sell your bit, it would,be in his interest to sell yours and the bit you want also.

what i mean is he gets two commissions but also you know nothing will happen before you sell....
hard to explain but hopefully ya get the jist

I like your thinking. That's an option alright.

I suspect there will also be 100K of a 'profit' to be made on this transaction if it went ahead so I need to look at the tax implications of that also.

frazzledhome

TUBBY wrote: »

Ok. Ethics out the window here but if the auctioneer selling the bit you want was also asked to sell your bit, it would,be in his interest to sell yours and the bit you want also.

what i mean is he gets two commissions but also you know nothing will happen before you sell....
hard to explain but hopefully ya get the jist

That's all well and good if the buyer of your bit isn't doing likewise. If you get loan approval today you'll not draw down for at least 10 weeks as bank will torture more paper from you than you'd believe.

My advice is call your bank, arrange meeting with their Ag guy and get the ball rolling, today. Meet him/her on your farm have accounts ready and ask what they need before they arrive

Toplink

Thanks for all the feedback here.

One thing I did find out is that if your over 55 and you sell land that you have been framing for the past 10 years then you are exempt from tax on the sale of the land.

One question I do have....

There is a site on this land (owned by a cousin of mine) that's being sold. As part of the sale I assume this site will have to be fenced off... The burning question, who is obliged to fence the site? The site owner or the farm owner.

I guess a 50/50 spread of the cost would be the best solution but checking just incase as said cousin is a tight ba$tard.

lakill Farm

Toplink wrote: »

Thanks for all the feedback here.

One thing I did find out is that if your over 55 and you sell land that you have been framing for the past 10 years then you are exempt from tax on the sale of the land.

One question I do have....

There is a site on this land (owned by a cousin of mine) that's being sold. As part of the sale I assume this site will have to be fenced off... The burning question, who is obliged to fence the site? The site owner or the farm owner.

I guess a 50/50 spread of the cost would be the best solution but checking just incase as said cousin is a tight ba$tard.

fencing is normally up to the person who sold the site so you

freedominacup

lakill Farm wrote: »

fencing is normally up to the person who sold the site so you

Any site deed I ever saw had a clause stating that the purchaser had an obligation to erect and maintain a stock proof fence.

frazzledhome

If it was me and it was holding me up I'd fence and move on. Two strands of electric fence

5live

freedominacup wrote: »

Any site deed I ever saw had a clause stating that the purchaser had an obligation to erect and maintain a stock proof fence.

That's true but as a livestock farmer are you not obliged to keep your stock on your property, ie fence off the section that you do not own?